Two common themes heard throughout the first week of the 2014 Legislative session were job creation and strengthening Iowa’s economy. As your voice in the Iowa Legislature, I take my role very seriously in passing responsible legislation that helps job creators expand and grow their workforces and businesses.
Last year, I supported legislation — House File 634 — addressing business growth and job creation. The proposed bill clarified the definition of replacement parts, including supplies consumed during the manufacturing process as exempt from sales and use tax.
Senate Republicans, much like a unanimous House, believed this was good tax policy because it placed the tax on the final product and not the inputs.
Consumable supplies are inputs into the manufacturing process and the output is taxed. Unfortunately, Senate Democrats amended House File 634 to remove this clarifying language and double-tax products manufactured in Iowa. Senate Republicans stand firm; Iowa’s manufactured products should not be double-taxed.
Making that fix in the consumables tax language would allow manufacturers to invest in new equipment. More importantly, eliminating the “double tax” creates an environment in which companies can continue to pay good wages and employ more skilled workers.
Senate Republicans will continue to pursue this significant piece of legislation because it is vital to growing our economy and creating a legacy of opportunity for Iowa’s future.
This week Tuesday I had the pleasure of hosting Jackie Reif, a 10th grader from Oskaloosa Senior High. As part of an English assignment requiring students to “job shadow,” Jackie contacted me and asked if she could follow me around the Capitol. It was a fun day for me, and I think Jackie enjoyed her day in the Iowa Senate.
As always, please contact me if you have questions or concerns that I can help with. Remember to join us at Smokey Row in Oskaloosa at 8:30 a.m. Saturday, Jan. 25.
Sen. Ken Rozenboom